Destion 4 OT 8 nem Allemptines Revenues Sandhill Travel Court was organized on July 1, 2024, by Betty Johnson. Betty is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Betty prepared the following income statement for her fourth quarter, which ended June 30, 2025. Rent revenue Operating expenses Advertising expense Salaries and wages expense Utilities expense Depreciation expense Maintenance and repairs expense Total operating expenses Net income Sandhill Travel Court Income Statement For the Quarter Ended June 30, 2025 Supplies Prepaid Insurance Notes Payable 1. > 2. 3. 4. 5. 6. 7. Betty suspected that something was wrong with the statement because net income had never exceeded $30,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the income statement and other data. You first look at the trial balance. In addition to the account balances reported above in the income statement, the trial balance contains the following additional selected balances at June 30, 2025, $9,075 $4,400 14,500 82,070 14,200 You then make inquiries and discover the following. 920 2,795 4,410 $219,100 94,595 15/30 = $124,505 Sandhill rental revenues include advanced rental payments received for summer occupancy, in the amount of $57,880. There were $1,865 of supplies on hand at June 30. Prepaid insurance resulted from the payment of a 1-year policy on April 1, 2025. The mail in July 2025 brought the following bills: advertising for the week of June 24, $130; repairs made June 18, $4,490; and utilities for the month of June, $235. Wage expense is $320 per day. At June 30, 4 days' wages have been incurred but not paid. The note payable is a 6% note dated May 1, 2025, and due on July 31, 2025. Income tax of $13,955 for the quarter is due in July but has not yet been recorded.

Sanchill Travei Court was organized on July 1,2024, by Betty Johinson. Betty a a good manaper but a poor accountant, From the trial balance prepared by a part time bockkeper. Betty prepared the following income statement for her fourth quarter, which ended June 30,2025. Betty suspected that soinething was wrong with the statement becase net inceme had never occeded 530 .000 in any one quarter. Knowing that you are an operienced sccountant, she aslos you to review the income statement and ocher data You first look at the trial balance. In addition to the account balances reported above in the inceme statement, the trial balance. contains the following additional selected balances at fune 30,2025 . You then make inquiried and discover the following: 1. Sandhill rental revenues indude advanced rental paments received for summer ocoupanc\%, in the amount of 559880. 2. There were 31865 of supples on hand at june 30 3. Prepaid insurance resulted from the payment of a 1 ycar policy on April 1, 2025 4. The mail in Jufy 2025 brought the foliowing bils advertising tor the week of june 24,5130 , repairs made june 18.54,490 and utilities for the month of June, 5235 5. Wage expenae is 5320 per day, At June 30,40m wages have been incurred but not paid. 6. The note parable is a 6% note dated Mar 1 .2025, and due con July 31.2003 7. Income tax of $13955 for the quarter is due in fuly but has not yet been recorded Sanchill Travei Court was organized on July 1,2024, by Betty Johinson. Betty a a good manaper but a poor accountant, From the trial balance prepared by a part time bockkeper. Betty prepared the following income statement for her fourth quarter, which ended June 30,2025. Betty suspected that soinething was wrong with the statement becase net inceme had never occeded 530 .000 in any one quarter. Knowing that you are an operienced sccountant, she aslos you to review the income statement and ocher data You first look at the trial balance. In addition to the account balances reported above in the inceme statement, the trial balance. contains the following additional selected balances at fune 30,2025 . You then make inquiried and discover the following: 1. Sandhill rental revenues indude advanced rental paments received for summer ocoupanc\%, in the amount of 559880. 2. There were 31865 of supples on hand at june 30 3. Prepaid insurance resulted from the payment of a 1 ycar policy on April 1, 2025 4. The mail in Jufy 2025 brought the foliowing bils advertising tor the week of june 24,5130 , repairs made june 18.54,490 and utilities for the month of June, 5235 5. Wage expenae is 5320 per day, At June 30,40m wages have been incurred but not paid. 6. The note parable is a 6% note dated Mar 1 .2025, and due con July 31.2003 7. Income tax of $13955 for the quarter is due in fuly but has not yet been recorded